Hamilton school board sets up anonymous 'fraud hotline'

A file photo of former Hamilton mayor John Bencivengo. The school district came under fire last year when it was embroiled in the corruption scandal that saw former mayor John Bencivengo convicted on corruption charges and decided last night to set up a 'fraud hotline'Michael Mancuso/The Times

HAMILTON — The district may soon provide a service to allow people to sound the alarm if they witness illegal or inappropriate activity in the school district.

Last night the school board unanimously voted to set up an anonymous “fraud hotline” in order to detect and deter fraudulent activity. The move comes in the wake of a town-wide scandal involving a school insurance broker who bribed the former township mayor.

School administrators will invite bids from firms to set up and monitor the service.

Attorneys and investigators would also be hired to look into any complaints that arise.

School employees will be able to use the fraud system to “communicate issues that relate to abuse, waste, fraud, ethical problems and workplace situations that impact quality of life and their ability to work and produce,” said Keith Ingling, the district’s recently-hired auditor who recommended the move.

The district came under fire last year when it was embroiled in the corruption scandal that saw former mayor John Bencivengo convicted on corruption charges.

The fraud hotline would allow anyone to make an anonymous complaint over the phone, online or via mail, Ingling said.

“There are lots of people out there who would like to speak to us but are afraid,” Ingling said. “If we convince them that any report they make is anonymous, it will help us get our arms around the total risk situation and assess the vulnerability that exists.”

At all times, trained professionals would be available to interview whistleblowers, who would be able to call back and keep track of any investigation of their complaint.

Another party — mosly likely a lawyer with experience as a prosecutor — would need to be hired as well. That person would be tasked with assessing the complaints and their credibility. A separate, licensed professional would actually investigate the complaints.

“Given the circumstances surrounding the current situation here, a lot of people might believe that it sort of defeats the purpose if the monitor gets the information and reports it back here,” to school officials, Ingling said. “They’re afraid no action will be taken.”

Assistant business administrator Peter Frascella said last night that the hotline service itself would likely cost around $1,500 to set up with an annual fee up to $1,000, but he said the total cost was difficult to estimate.

In the system recommended by Ingling, the attorney would likely charge an hourly rate that could result in a hefty bill depending on the number of complaints.

“Depending on the number of investigations, it could be a lot of money,” he said.

There would also be an investigator’s fee on a case-by-case basis, Frascella said.

“The cost is nominal and, if we get one investigation where they find one instance of fraud, it might make up for the cost,” board member William Harvey said.